Business
Uganda introduces e-Tax collection system
Sunday, January 22, 2012
Uganda has introduced an electronic tax collection system that is set to cut evasion and help boost domestic revenue collection.
The country’s revenue collection equivalent to 12.5 percent of Gross domestic product (GDP) is below average for the East African Community (EAC) and sub-Saharan Africa as a whole.
In comparison, Tanzania’s average collection stands at 16 percent of GDP and Kenya’s at 25 percent.
Low tax- to-GDP ratios force countries to either continuously borrow or rely on aid to prop up government expenditure.
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